🇮🇳 India Turns 78: Ulta & Target Split, Knight’s $2B Gift & Klarna’s $26B Move

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📰 India Retail Pulse

Trump tariff blow set to ripple through India’s economy, banks, and manufacturing ambitions
Fitch’s CreditSights warns that new US tariffs could slow India’s growth, pressure banks, and dent manufacturing exports.
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PM Modi vows October cuts to Goods and Services Tax
The Prime Minister promises GST rate reductions from October to boost consumption and economic activity.
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Rural India, small manufacturers lead FMCG growth in April–June; urban recovery gains momentum
Lower inflation and improved distribution drive rural FMCG sales, with urban demand gradually picking up pace.
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China, India in talks to revive border trade halted since 2020
Both nations explore reopening trade routes closed after the 2020 Ladakh standoff, aiming to restore commerce.
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Ahead of festive season, Myntra introduces zero-commission model for select ethnic wear brands
Move aims to attract sellers and expand festive season offerings in the ethnic apparel segment.
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Instamart, Shoppers Stop’s Home Stop partner to deliver premium home products in key metros
Partnership to offer high-end homeware deliveries through Instamart in major Indian cities.
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🌍 World Retail Headlines at a Glance

Gildan buying HanesBrands in $2.2B cash-and-stock deal
Acquisition aims to expand Gildan’s global apparel footprint and diversify its product portfolio.
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Shoppers spending $47 more per month under Trump’s tariff regime
Rising import duties are driving higher costs for everyday goods in the US.
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Coach parent Tapestry cuts profit forecast on tariff hit; shares slump
Luxury retailer cites increased import costs from tariffs as a key drag on earnings.
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Target and Ulta to end partnership in 2026
The in-store beauty shop collaboration will wind down after five years.
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Klarna selling up to $26B in buy-now, pay-later loans to Nelnet
The deal will transfer a large portion of Klarna’s US loan book to Nelnet.
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Nike founder Phil Knight donates $2B to Oregon Cancer Center
The record-breaking gift will help fund cancer research and patient care initiatives.
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Japan posts unexpectedly strong GDP on resilient exports
Export growth and consumer spending drive Japan’s economic surprise.
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DeepSeek delays next AI model amid attempt to use Chinese chips
The AI company’s hardware sourcing shift is causing production setbacks.
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China’s factory output, retail sales growth slump in blow to economy
Weaker consumer spending and production signal slower momentum for China’s economy.
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Bezos-backed Perplexity AI makes surprise bid for Google Chrome
The AI search startup challenges one of the most dominant web browsers.
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Jackie Bezos, who funded Jeff’s startup, dies at 78
Amazon founder Jeff Bezos’ mother played a key role in his early entrepreneurial journey.
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🔥 Top Funding & Quarterly Results

Atomic Capital launches ₹400 Cr fund for consumer startups
New fund to back high-potential brands in India’s consumer goods sector.
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TMRW House of Brands raises ₹437 Cr from ServiceNow Ventures
Funding will help expand TMRW’s brand portfolio and tech capabilities.
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Vishal Mega Mart shares surge 8% after Q1 profit jumps 37% YoY
Strong sales momentum lifts profitability for the retail chain.
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Domino’s India operator beats Q1 profit expectations on strong delivery demand
Jubilant FoodWorks sees higher orders and ticket sizes driving growth.
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FirstCry parent’s Q1 revenue up 13% to ₹1,863 Cr; losses narrow
Revenue gains from expanding product lines and improving efficiency.
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Vibe Coding startup Lovable targets $1B annualized sales in 2026
Tech company plans aggressive growth driven by social commerce adoption.
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👔 Key Retail Appointments

Freddy Bharucha named next CEO of P&G Beauty, effective Dec. 1
Veteran P&G executive to take the helm of the company’s global beauty business.
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IKEA appoints Juvencio Maeztu as CEO and President of Ingka Group
Maeztu steps into the top role at IKEA’s largest retail franchise group.
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Citigroup hires Guillermo Baygual from JPMorgan as Co-Head of M&A
Baygual will lead Citi’s global mergers and acquisitions business alongside existing leadership.
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🤖 Deep Dive: Tariffs — India’s New Trade Test & the Global Ripple Effect

What Is Happening

The US has imposed sweeping 50% tariffs on a wide range of imports from India — a move industry leaders describe as “an embargo in disguise.” From garments to electronics, shrimp to software, sectors that rely heavily on US demand are bracing for impact. Indian exporters are scrambling to find alternative markets, with some seeking urgent government intervention to protect billions in trade. The blow comes just as India’s FMCG and manufacturing sectors were showing signs of momentum, driven by rural demand and small-scale manufacturing gains.

Why It Matters

• Export-heavy industries under strain – Apparel manufacturers like Gokaldas Exports call the tariff “worse than COVID” in terms of disruption, while electronics makers are eyeing Europe and the Middle East to offset losses.

• Agricultural and seafood risks – Shrimp exporters warn of a potential $2B hit to revenues unless the government steps in with relief measures.

• Tech sector jitters – Indian IT firms are on edge as protectionist trade moves could extend to digital services and outsourcing.

• Macroeconomic pressure – Fitch’s CreditSights warns the tariffs could slow GDP growth, strain banks, and dent manufacturing ambitions. India’s July trade deficit has already widened to an eight-month high.

The Global View

Trump’s tariffs are sending aftershocks worldwide:

• Luxury retail squeeze – Global brands like Coach parent Tapestry are cutting profit forecasts due to rising import costs.

• Consumer burden – US shoppers are paying $47 more per month on average for goods.

• Shifting alliances – India and China are cautiously exploring renewed trade ties, sensing mutual benefit amid unpredictable US trade policy.

• Investor lens – While S&P upgraded India’s rating on growth prospects, analysts warn prolonged trade headwinds could erode momentum.

Bottomline

India’s growth story is colliding head-on with protectionist politics. Diversifying export destinations, boosting domestic demand, and fast-tracking trade partnerships will be critical to weathering this storm. But with mid-term elections coming up in the US, tariff volatility may be here to stay- making 2025 a defining year for India’s manufacturing ambitions and global supply chain role.

📚 Sources:

ET Retail | Economic Times | Bloomberg | Reuters | LiveMint

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